Audited financial statement of CNPC-Aktobemunaigas OJSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, April 27, 05/ - CNPC-Aktobemunaigas OJSC (Aktobe), whose common shares are circulating in Kazakhstan stock exchange's (KASE) official "А" listing category, presented KASE auditor's report compiled by PricewaterhouseCoopers (Almaty) on the company's consolidated financial statement for 2004 made in compliance with Kazakhstan accounting standards (KAS). According to auditor's data company's consolidated result of financial and economic activity as of December 31, 2004 is as follows: (th. KZT, unless otherwise specified): -------------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------------ ----------- ----------- Authorized capital (paid-up) 14,835,638 14,835,638 Shareholders' equity 91,909,845 121,305,384 Total assets 192,565,586 234,763,004 Net working capital -16,045,304 626,142 Accounts receivable (net) 23,585,773 31,954,919 Liabilities, total 100,654,985 113,456,722 Obligations on loans (including eurobonds) 40,107,045 44,961,712 Accounts payable 26,760,067 26,230,313 Reserves for restoration of the site 1,618,187 2,309,883 Incomes from sale 121,514,582 151,624,899 Cost of goods sold 35,854,103 41,423,520 Net income 36,029,434 50,396,533 ------------------------------------------ ----------- ----------- Calculated by auditor's data: ------------------------------------------ ----------- ----------- Return on sales (ROS), % 70.49 72.68 Return on equity (ROE), % 39.20 41.55 Return on assets (ROA), % 18.71 21.47 Earning per 1 common share (EPS), KZT 3,803.12 5,358.79 Price earning ratio (P/E), KZT - 1.70 Book value of 1 share, KZT 9,292.81 12,264.93 -------------------------------------------------------------------- Audit of consolidated financial statement of the comapny (hereinafter - Group), prepared by KSA, was made by PricewaterhouseCoopers in compliance with Kazakhstan auditing standards. Consolidated financial statement of the Group for year 2004 includes financial statements of the company and two subsidiary companies - ZhGTES LLP (Aktobe, 51.0% market share in authorized capital) and CNPC-Aktobemunaygas Capital B.V. (Rotterdam, Netherlands, 100% market share in authorized capital). In the report auditor draws attention on the following: A certain part of company's fixed assets, initially reflected by initial cost, in period from January 1, 1993 to January 1, 1997 was periodically revaluated in accordance with special coefficients set by Kazakhstan state statistics committee that, in auditor's opinion, does not correspond to the requirements of KSA 6. Difference between cost of fixed assets reflected in consolidated balance sheets, and their cost required for compliance with KSA 6, cannot be precisely determined and may be considerable. Company does not evaluate developed proved extracted reserves of oil and gas, quantity of which is used for calculation of amortization and balance cost of oil and gas assets, and for calculation of reserve for restoration of sites with attraction of independent experts. On the reason an independent reserves evaluation was absent, the auditor had no possibility to make sure they had been evaluated correctly by company's governing body and to determine effect of influence of possible differences in evaluation of reserves upon company's financial statements. In the opinion of PricewaterhouseCoopers, regardless influence of corrections, the necessity in which might appear taking into account the above-mentioned things, the consolidated financial statements for sure in all essential aspects reflect financial condition of CNPC-Aktobemunaigas OJSC and its subsidiary companies as of December 31 of 2004, results of their financial and economic activities and cash flow for the year, which ended by that date, in compliance with KAS. Company's primary activities: mine workings and extraction of hydrocarbon raw stuff; drilling of exploration, structure and operational wells; exploration, survey and exploitation of oil and gas deposits; refining of oil and gas, transportation and sale of oil, gas and products of their refining; receiving and sale of electrical and heat energy; building of pipelines and pipeline transportation; mine workings and extraction of drilled mineral resource and mineral resource of joint origin, their selling and other activities in compliance with Company's charter and licenses, which company possesses. [2005-04-27]